Farmers in England will receive an advance on BPS payments this year, in a bid to aid cashflow on the back of rising input costs.

According to Defra, the first payment (50%) will be made from the end of July and the second (remaining 50%) made from December. This will also remain a permanent change until the end of the agricultural transition period, says the department.

“While increasing farm gate prices may mean that farm profitability remains stable, we recognise the short term pressures on cash flow,”  says environment secretary, George Eustice.

Permanent change

“We have decided to bring forward half of this year’s BPS payment as an advance injection of cash to farm businesses from the end of this July. It will give farmers some additional cashflow earlier in order to provide some confidence. We will also make this a permanent change to the way we pay BPS in future with twice yearly instalments going forward.

“In the days of the EU this would never have been possible due to the way audits worked and the need to enforce the three crop rule during the summer.”

Boost to cashflow

RPA chief executive, Paul Cauldwell, adds that bringing payments forward will be a ‘welcome boost to cashflow’ for many.

“This is not just an opportunity to support farmers here and now through a cash injection. It’s a permanent change to bring Direct Payments in line with what will be a more regular payment system under the new environment land management schemes.”

The deadline for submitting Basic Payment Scheme 2022 applications is Monday 16 May 2022.